Beach club anything on disney extending membership?

[wcjoey43]

i know disney gave option for Old Key West. has anyone heard if they will for beach club?

 

[Deb & Bill]

i know disney gave option for Old Key West. has anyone heard if they will for beach club?

Probably not because the OKW extension was a flop.

 

[_auroraborealis_]

I suspect some of the 2042 resorts will be offered extensions, but not until there is a stronger strategic plan for what they're doing with the lot of them come 2042, and it won't be until at least 2035.

The operational Pandora's Box they created with OKW will be a bloody nuisance in and of itself in 2042.

 

[BillPA]

That would be nice, since when BCV opened you only had 40 years to start with.

 

[ziravan]

If DVC offered a 15 yr extension on BCV today, it'd have a far different reception than OKW.

It'd set an already hot resale market for a 24 yr resort into nuclear meltdown.

 

[chalee94]

If DVC offered a 15 yr extension on BCV today, it'd have a far different reception than OKW.

It'd set an already hot resale market for a 24 yr resort into nuclear meltdown.

keep in mind that a $25 per pt extension price for OKW 10 years ago might translate to a $60-75 per pt extension price for BCV now. OKW felt overpriced for pts you couldn't use for 35 years - i'm sure DVC wouldn't low-ball the price on BCV since you'd "only" have to wait ~25 years.

then there's the issue of whether BCV's contracts were worded similarly to OKW - as a few OKW owners are holding out to challenge DVC's right to charge at all for extending the land lease.

while i doubt they want to be reselling at least 4 competing resorts in 2041/2042 (BCV/BWV/BRV/OKW leftovers - i'd bet on VB being spun off with HHI about 50/50), the OKW extension was such a train wreck, they'll need to approach it from a very different angle.

 

[MountainMouse]

keep in mind that a $25 per pt extension price for OKW 10 years ago might translate to a $60-75 per pt extension price for BCV now. OKW felt overpriced for pts you couldn't use for 35 years - i'm sure DVC wouldn't low-ball the price on BCV since you'd "only" have to wait ~25 years.

then there's the issue of whether BCV's contracts were worded similarly to OKW - as a few OKW owners are holding out to challenge DVC's right to charge at all for extending the land lease.

while i doubt they want to be reselling at least 4 competing resorts in 2041/2042 (BCV/BWV/BRV/OKW leftovers - i'd bet on VB being spun off with HHI about 50/50), the OKW extension was such a train wreck, they'll need to approach it from a very different angle.

Makes you wonder what the plan was when they set all of those resorts up as 2042 expirations. I guess getting them back is no financial loss for Disney so in a worst case they'd just have a glut of rooms to rent.

 

[disneynutz]

Disney will do what make Disney the most money. If a new larger building makes them more money over extending, they will tear BCV down and build new, maybe extending into the parking lot.

Bill

 

[Spartan86]

The operational Pandora's Box they created with OKW will be a bloody nuisance in and of itself in 2042.

I would guess much has already been said, but might you expand on that a bit for me to understand what you see happpening?
Thanks

 

[_auroraborealis_]

I would guess much has already been said, but might you expand on that a bit for me to understand what you see happpening?
Thanks

Keep in mind that every DVC deed attaches to a real piece of the property. You "own" some percentage of an actual unit, in a real building.

Only about a third of OKW took the extension. There is no rhyme or reason to what unit each of these extended contracts attaches to, naturally.

The wording of the extension was such that many OKW owners do not think it legally enforceable to change their terms of ownership.

So, in 2042, even assuming ongoing ROFR and resale of points at 2057, let's be generous and say 50% of the resort is extended.

What do you do with the other 50%?

• Sell them? At what kind of rate, given that it's a 15-year contract on a very old property that will not get a complete rebuild? How will this rate compare to rates for new builds or anything they just take the full RTU in 2042 and redo and resell?
• Hold onto them? Rent for cash? This creates a weird hybrid that will be an issue amongst many DVC owners, especially as the other 2042 resorts become non-bookable on points. To sell 50% of OKW on cash will mostly just cover maintenance and require discounting.
• You can't tear down half the resort, because you cannot tear down any building with an extended deed.
• And, of course: Maintenance and dues.

At some level, you create a conflict with your own new sales product, and with the value proposition to the other owners, no matter what you do, unless you just buy everyone out, which is $$$.

 

[Spartan86]

Gotcha. Thank you. Yes a mess indeed.